Insurance carriers are navigating a challenging market, where two primary drivers are working together to intensify risk and pressure.
As economic pressures drive a rise in complex claims, carriers face ongoing threats to operational efficiency and customer service delivery. These claims require specialized expertise, yet experienced claims professionals are often in short supply.
The shortage of talent makes complex claims more difficult to manage, while the growing complexity of claims further stresses the demand for skilled professionals. At the same time, the aging workforce is accelerating the loss of experienced talent, creating a significant barrier to developing the next generation of claims experts.
We explore how these interconnected challenges are impacting North American carriers and examine the strategies organizations can adopt to strengthen claims capabilities, close the expertise gap, and deliver better outcomes for customers and businesses.
Rising claims complexity is reshaping carrier operations
Increasingly, once relatively straightforward claims handling now often requires greater technical expertise and more extensive investigation. According to our annual whitepaper, The Carrier Perspective: 2026 Claims Insights, 64% of North American carriers observed an increase in claims complexity over the past 12 months. Claims are rising in complexity as insurers contend with a convergence of environmental, legal, technological, and customer-driven pressures. More frequent and severe climate events are driving higher claim volumes and more complex losses, while social inflation, rising litigation, and tighter regulation are driving settlement costs, legal involvement, and compliance demands. Simultaneously, advances in technology require more specialized expertise to assess claims accurately, while increasingly sophisticated claim fraud schemes and growing customer expectations for fast, seamless digital experiences place further pressure on carriers to deliver efficient, accurate, and compliant claims handling.
Collectively, these dynamics are materially reshaping carrier operations and redefining what effective claims management looks like. The growing complexity of individual claims is driving longer handling times, higher costs, and a greater need for specialized knowledge across the industry. It is also increasing operational variability and placing sustained pressure on claims organizations to maintain consistency, efficiency, and service quality at scale.
The widening skills gap is a defining industry-wide challenge
The Carrier Perspective: 2026 Claims Insights saw North American respondents cite talent attraction and retention as the top business challenge (18%) for the second year in a row, with the issue also ranking first globally (68%), up from seventh in 2025.
With a key driver of this talent shortage being an aging and retiring workforce, a major symptom remains the loss of experienced employees who offer a level of valuable institutional expertise that is difficult to replace. As these professionals leave the workforce, organizations lose the knowledge and judgement built over years of experience, creating skills gaps that can weaken performance and undermine long-term business success.
As claims become more complex, 46% of North American carriers reported shortages in specialized or skilled case management. Replacing specialized expertise is not as simple as broadening your pool of talent. Without an adequate succession plan, the continual loss of experienced talent can impact your service delivery and overall business outcomes.
Building resilience through scalable claims capability
For carriers, claims resilience is now a business imperative. As complexity, severity, litigation, and workforce constraints intensify, operating models must be able to scale capacity, maintain service continuity, and protect performance during periods of volatility. Moreover, scalable claims capability gives organizations the flexibility to manage surges in volume, access specialized expertise when needed, and reduce the operational strain that can arise when internal teams are stretched.
This type of resilience is especially important in a market where claims complexity and workforce disruption persist. By strengthening their operating model through the right mix of internal talent, external expertise, and structured knowledge transfer, carriers can build a more sustainable claims function that improves predictability, controls costs, and delivers consistent outcomes now while preparing the next generation of claims professionals for the demands ahead.
Addressing talent shortages with strategic partnership
Across both North American and global markets, 94% of respondents cited workforce challenges as a major operational constraint, further slowing claims resolution and causing administrative burden. Carriers must take strategic action to address the talent shortage and minimize its impact on operational efficiency and business performance.
Investment in training and development has emerged as the dominant approach to managing talent attraction and retention, with 58% of North American carriers prioritizing this approach in 2026. By partnering with Gallagher Bassett (GB), organizations can access the specialty expertise required to handle this complex claims environment. They can also execute strategies to invest in training and development, inviting new talent to sit alongside experienced claims handlers who can share their knowledge and best practices with new entrants into the claims profession.
At GB, continued investment in our people and their development has always been a core priority. By building a strong foundation of well-equipped professionals, we have been able to safeguard our ability to support clients and partners in achieving superior outcomes and provide them with valuable workforce reinforcement that plugs the talent gaps currently afflicting the industry.
One key example of how we are nurturing the next generation of talent is our Industry Navigation, Values, Education, Skills, and Training (INVEST) Emerging Talent Program. INVEST is a pipeline for rising claims professionals to cultivate their skills in the risk and insurance industry, offering a seamless blend of advanced education, hands-on experience, and guided mentorship that ensures participants don’t just learn how to manage claims, but also learn how to advocate, communicate, and lead.
Connect with us today to learn more about how a strategic partnership with GB can help your organization attract and retain talent while giving you the expertise required to handle the rise in complex claims in a constantly evolving risk landscape.
